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The New ASOP 6: Implications for OPEB Reporting (PDF)

"In the most extreme case, let's consider a small plan sponsor in a pooled health plan where retirees pay 100% of the premiums. Under GASB 45 and the previous version of ASOP 6, this entity would not have any OPEB liability, because retirees are paying the entire premium and the community-rating exception allowed for the implicit rate subsidy to be ignored. Under the new ASOP 6 and GASB 74/75, the entity will have a liability due to the 'implicit rate subsidy,' which must now be recognized even in community-rated plans.Another type of plan where the impact will be large is one where the sponsor contributes a flat dollar amount per month to retirees in a pooled health plan." Milliman

New ERISA Regulations for Disability Claims and Appeals

August 13 webinar will explain what new practices to follow, how to change past practices to become compliant with the new regulations, and the risks of non-compliance. Discount for BenefitsLink readers .

Companies Offering CDHPs, HSAs, FSAs, and HRAs in 2018

"CDHPs rose from 30% in 2014 -- and 23% in 2017 -- to 40% in 2018 ... While CDHPs have grown overall, somewhat surprisingly the prevalence of full replacement CDHPs actually decreased very slightly, down to 3% in 2018 from 4% in 2017.... [T]he number of employers offering health reimbursement arrangements (HRAs) has remained relatively steady in the last five years, growing in prevalence by 2% from 2014 to 2018." Connect Your Care

New Rule on Short-Term Health Plans Could Affect COBRA Choices

"New employees typically have a 90-day waiting period before insurance coverage begins or have an extremely expensive COBRA option when they leave a job. That's when short-term health plans, which are structured like major medical health plans, can provide coverage and save consumers about 50 percent or more when compared to ACA plans." Society for Human Resource Management [SHRM]

Former CEO of GE Pinpoints the Moment He Realized Healthcare Was His Problem

"Jeff Immelt's employee healthcare problem began in 2009. Immelt, then the CEO of General Electric, learned that his company had spent $3 billion annually on healthcare for employees. That was more than the company's healthcare unit was making, and was more than the company had spent on steel.... The company set up different metrics and made it a higher priority for its executive team. it started to talk about employee healthcare on a quarterly basis rather than once a year." Insider

Health and Welfare Trusts Seek Increased Guidance Regarding Continuation Value (PDF)

"A variety of methods can be utilized to assess the financial status of a health and welfare trust. One of the most common methods is to estimate continuation value, or the amount of time that the trust can continue to cover the cost of benefits to its participants and pay for associated administrative, operating, and professional expenses, assuming no future income.... But what level of continuation value should a health and welfare trust target? While the question is common, the answer is complex and requires assessment and understanding of a variety of factors" Milliman

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The Relationship Between Health Plan Type, Use of Specialty Medications, and Worker Productivity (PDF)

24 pages. "[The authors] found mixed results when it came to whether plan type had an impact on whether any specialty medications were used.... Among individuals that had filled a specialty medication prescription, [the study] found mixed effects by plan type on the number of prescriptions filled, depending on the disease.... [The authors] not find significant relationships between any use of specialty medication, and any days absent or conditional number of days absent except in one case." Employee Benefit Research Institute [EBRI]

Do Health System Mergers in Separate Geographic Markets Create Antitrust Problems?

"Within the last few years, some antitrust economists and the FTC have expressed an increasing interest in a theory of 'cross-market effects' in hospital mergers. This theory posits that mergers between hospitals in entirely separate geographic markets nonetheless can create market power that results in higher prices for health plans and, indirectly, for consumers.... But even if we assume that cross-market effects can occur as an empirical matter, do the antitrust laws prohibit cross-market transactions?" Drinker Biddle

Denial of Tuition Benefits Did Not Breach Fiduciary Duties Under Early Retirement Plan

"The court ruled for the university, finding that the FAQ document clearly disclosed that it was only a summary description of the early retirement incentive plan and directed readers to further information and resources ... The professor had not obtained a copy of the retirement incentive plan ... before signing his early retirement agreement, and the court found his reliance solely on the FAQs unreasonable considering the numerous disclaimers and references to additional resources. The court further held that the university had no fiduciary duty to notify the professor of changes to the FAQs." [ Wasserstein v. Univ. of Chicago , No. 17-6567 (N.D. Ill. July 19, 2018)]
Thomson Reuters / EBIA

SEC Solicits Comment on Modernizing the Rules and Forms for Stock-Based Compensation

"The concept release is aimed primarily at evaluating whether to update and streamline the regulatory framework governing compensatory securities offerings to accommodate changes in the workforce related to the gig economy and evolving forms of equity-based compensation. While the substance and timing of any changes remains uncertain, any responsive amendments to Rule 701 and/or Form S-8 could significantly alter the ways, and to whom, companies compensate their service providers." Skadden

Press Releases

Westminster Consulting Earns an Outstanding Net Promoter Score of +90 Westminster Consulting

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Ascensus Appoints Scott Lind as Head of Digital Experience Ascensus

Westminster Consulting Earns an Outstanding Net Promoter Score? of +90 Westminster Consulting

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